Thai gold has a chance to make a new high. After the baht has continued to depreciate, most recently reaching 36.50 baht/dollar, YLG sees a chance of reaching 37 baht/USD. The price of gold in the country has a chance to go up. 33,250-33,550 baht per gold baht
Mrs. Pawan Nawawattanasap, Chief Executive Officer of YLG Bullion International Company Limited (YLG), said that the price of gold in the country Even though this morning it decreased according to international prices. But it moves at a high level. And it is likely to continue making new high prices for a while following the direction of the baht depreciating past 36 baht per US dollar. Since the beginning of the year, the baht has depreciated by more than 4% because Thai bond yields are low compared to US bond yields. Based on market predictions that there may be a chance of seeing the baht depreciate to 37 baht per US dollar. If the baht depreciates to that level The price of gold in the country has a chance to go up. 33,250-33,550 baht per gold baht If the price of gold goes up to that point, it is recommended to split and sell to make a profit.
However, it was not only the price of gold in Thailand that made new highs. But gold prices in the region also hit new highs. The price of gold in the world market has not changed much.
YLG estimates that The depreciation of the baht is likely to occur in the short term because, considering the overall economic outlook around the world, it is seen that the Federal Reserve (Fed) is unable to maintain its high interest rate policy for a long period of time. Because it may affect SME businesses and the banking sector, it is seen that within the first quarter of next year, interest rates will begin to decrease.
As for the price of gold in the country that has risen to the point of being able to reach an All Time High during this period, it is therefore seen that it will be a short-term increase. Investors can speculate within the support range of 32,450-32,150. baht per gold baht and find a profit point at the resistance level 33,250-33,550 baht per gold baht
However, even though it is seen that the price of gold has risen rapidly, it is only in the short term. But the big picture in the next 3-5 years, gold prices still tend to move in positive territory. Because the direction of the policy interest rate during this period is likely to start going down.
Miss Kanchana Chokpaisansin Research executive Kasikorn Research Center Revealed that the baht weakened, testing the line of 36.50 baht per dollar. which is the weakest level in almost 11 years One and a half months this morning (10.05 a.m.), the baht continued to depreciate in the period before the meeting results. Monetary Policy Committee (MPC) this afternoon. However, the depreciation of the baht is still in line with the direction of other currencies. in Asia and the decline in gold prices in the world market Meanwhile, the dollar strengthened after several top Fed officials maintained a tight stance. Supporting the policy interest rate increase To control inflation, which is still higher than the Fed's target.
For yesterday (Sept. 26), the COMEX (Commodity Exchange) gold contract was delivered in December. fell $16.80 or 0.87% to close at $1,919.80/ounce. Closed negative for the second day in a row due to the strengthening of the dollar and the rise in US government bond yields. Analysts expect gold prices may fall to $1,900 if the US releases a strong PCE index, indicating that the Fed is likely to raise interest rates in November.
As for gold in the country, this morning (Sept. 27) decreased by 50 baht from yesterday, gold bars sold for 32,850 baht per baht and gold jewelry sold for 33,350 baht per baht.
Source: Thai News Agency